Culture is a multi-faceted influence constantly at work in and through the lives of
individuals through their identity. The unique combination of cultural memberships each person inhabits essentially defines individuality. The theory of social identity provided a framework for understanding how the values, norms, and beliefs of individuals were derived from their cultural memberships. Further, the multi-dimensional importance of reference groups as a feedback mechanism that provided context for information as well as a measuring tool for derived satisfaction (Berzonsky, 2010) was explored. Identity was found to be a contributor to satisfaction in all domains, including financial satisfaction. The concept of individuals experiencing a web of cultures simultaneously (Geertz, 1973; Toh & Leonardelli, 2012), and valuing cultural membership in unique ways, reinforced the complexity of measuring the association between culture and financial satisfaction.
Culture is omnipresent, yet often subtle, and in most circumstances not an explicitly selected influence in the lives of individuals. It is the experience associated with being a member of a geographic culture, whether that be the unique experience associated with living in an apartment in New York City, or a ranch on the plains of West Texas, which is intuitively recognized by members. As cultures are experienced, they influence the values, norms and beliefs of members and contain influential reference groups. The feedback and measuring sticks provided by reference groups work internally to inform satisfaction in all life domains
(Kahneman, Diener, & Schwarz, 1999).
individual cultures studied and their association with financial satisfaction was found to be small overall. When considered in a cumulative manner, many of the statistically significant
associations with financial satisfaction were lost. However, the internal interplay between cultures, which are as unique to individuals as their fingerprint, provided insights into financial satisfaction, which may prove valuable to planners, educators and counselors. Financial
satisfaction was found to be associated with help-seeking behaviors (Joo & Grable, 2001), which may be a critical step in achieving financial security.
Utilizing a sample of 1,954 respondents to the 2012 General Social Survey, a series of analyses were conducted to test the associations between three cultures (i.e., geography, socioeconomic status and religion) and financial satisfaction. Twenty variables were selected from the data set; five represented the culture of geography, five represented the culture of SES and three were analyzed for the culture of religion and religiosity in the analyses. Financial satisfaction, a three item Likert-type scale, was the single dependent variable used to assess the associations. Control variables of marital status, age, race and gender were also incorporated into the research design.
Research Questions
Research Question OneResearch question one sought to establish the associations between measures of each of the three cultures and financial satisfaction. Each individual culture, in logistic regression analyses was measured, along with control variables, for association with financial satisfaction. The nine hypotheses associated with this research question were:
H1: There will be a positive association between at least one characteristic of
H2: Individuals who are living in the same state as at age 16 will have more
statistically significant predictors of financial satisfaction than those who are not living in the same state as at age 16.
H3: Higher scores on objective measures of socioeconomic status will be
positively associated with financial satisfaction
H4: Social class, a subjective measure of socioeconomic status, will be positively
associated with financial satisfaction in the middle and upper classes.
H5: Social class, a subjective measure of socioeconomic status, will be negatively
associated with financial satisfaction in the lower, and working classes.
H6: Active participation in religion, as measured by the objective terms of attend
and pray will be positively associated with financial satisfaction.
H7: A subjective measure of religiosity will be positively associated with
financial satisfaction.
H8: When combined into a single analysis, the objective measures of the cultures
of geography, SES and religion will retain their character in association with financial satisfaction. (i.e., geography will be positively associated; SES will be negatively associated; religion will be positively associated).
H9: When combined into a single analysis, subjective measures of the cultures of
SES and religion will retain their character in association with financial satisfaction (i.e., SES will be negatively associated; religion will be positively associated).
Geography. The relationships between the culture associated with geography and financial satisfaction were assessed in two ways because culture is not contained in the soil of a geography, but in the relationships and traditions consistent with a place. The transmission of
values, norms and beliefs of shared within a geography have been found to be significant in defining the culture of the place (Borer, 2006). The literature associated with geography found location stability to be generally beneficial (Ross, Reynolds, & Geis, 2000), therefore, an assessment of the financial satisfaction of individuals who were currently living in the city or state where they lived at age 16 was compared with those who were living in a different state than at age 16. The comparison found the number of predictors with statistically significant associations with financial satisfaction varied with more predictors found among individuals who were living in the same state as they did at age 16. The geographic descriptors of region and population density had no statistically significant associations with financial satisfaction. Living in a single family home was found to be positively associated with financial satisfaction as was home ownership. This relationship is consistent with the literature finding of a stronger sense of community and value for that community by individuals who own homes (Hoff & Sen, 2004). Thus, the positive relationship between these two geographic characteristics (e.g., single family home, home ownership) and financial satisfaction demonstrate the shared values, norms and beliefs belonging to a geography exert. Hypotheses H1 andH2, were supported.
SES. Analyzing the culture of SES through the objective measure of income and SES rank, as measured by the Hollingshead Index, found income to be the only consistent variable associated with financial satisfaction. The subjective measure of SES, social class, broken down into lower, working, middle, and upper class, found respondents who identified themselves as belonging to the lower class to have a negative association with financial satisfaction, and those who identified themselves as belonging to the upper class were found to have a positive
association with financial satisfaction. Those in the working and middle class had no statistically significant association with financial satisfaction. In sum, through logistic regression analysis,
associations between SES, particularly differences based on social class and financial
satisfaction, were identified. Hypotheses H3 was partly supported, as income was consistently
positively associated with financial satisfaction. H4 was partly supported as there was a positive
association between financial satisfaction and the upper class only. Similarily, H5 was partly
supported as there was a negative association between financial satisfaction and the lower social class only. This finding differed from Kahneman and Deaton’s (2010) finding of positive
assocations between income and financial satisfaction, albeit with diminishing utility as income increased.
Religion. The analyses of the culture of religion and associations with financial
satisfaction resulted in inconsistent results. The subjective measure of religiosity and the factor created from the two objective measures of religiosity (prayer and attendance) were not
statistically associated with financial satisfaction. However, in a logistic regression of the two objective measures (e.g., prayer and frequency of attendance at religious services), attendance was positively associated with financial satisfaction. In sum, there were mixed results from three different analyses of religiosity for association with financial satisfaction. Hypotheses H6 was
only partly supported with the attend variable positively associated with financial satisfaction. H7
was not supported as no statistically significant relationshnip between the subjective religiosity factor and financial satisfaction was found.
In individual assessments, all three cultures studied had characteristics that were found to be associated with financial satisfaction. These associations supported the concept of different kinds of culture having an association with financial satisfaction. Contributing more than demographic descriptors, the cultures that were embedded in where we live, our socioeconomic
status and our religiosity were at work through our identity, and the influence of reference groups, to be associated with financial satisfaction.
All cultures combined. When combined into a single analysis, statistically significant logistic regression models were created. In the model that utilized the objective characteristics for each culture, characterisitcs of the cultures of SES (i.e., income) and religiosity (i.e.,
attendance) were statistically significant. In the model that substituted the subjective measures of social class and religiosity for the objective measures, characteristics of geography (i.e., home ownership). SES (i.e., lower class, upper class) and a control variable (marital status) were statistically significantly associated with financial satisfaction. As a result of this varied outcome, hypotheses H8 and H9 were not fully supported. Of all of the variables studied, income and, the
control variable marital status, were the most consistently positively associated with financial satisfaction.
Research Question Two
The second research question sought to establish the subjective measures of the culture of SES and religiosity to be correlated and substitutable for the objective measures of those
cultures. The genesis of this question derived from the practical application of the research to financial service providers. Deriving cultural context from a series of objective measures would be challenging and an unlikely course of action for most professionals. However, if the presence of an influential cultural context can be derived from a single question, more planners, educators and counselors might be able to apply the research within their practice with clients. Categorical regression modeling was used to establish the association between income and SES rank with social status, the subjective measure. The regression analysis found a statistically significant (p < .001) association between social class as the dependent variable with SES rank and income with
a pseudo R2 of 18.7% (Nagelkerke). Substituting social classes for the income and SES rank
variables in a logistic regression analysis resulted in a statistically significant model (p < .001), with a pseudo adjusted R2 of 14.4% (Nagelkerke). Hypothesis H
10 was supported.
The culture of religion and religiosity was more complex. In this case, associations between two objective measures of religiosity (frequency of prayer and frequency of religious service attendance) were analyzed in a logistic regression analysis with the question “how religious are you?” A statistically significant model was created and the pseudo R2 of 37.4%
(Nagelkerke) indicated a better correlation between the objective and subjective measures than was found between social class and the SES variables. When substituted in logistic regression analyses to measure the association between religiosity and financial satisfaction, results were mixed. The subjective measure (“how religious are you?”) was not statistically significant in the model. Taken one step further, the two objective measures of religiosity were included in a PCA factor analysis and a religiosity factor was created. The religiosity factor was assessed in a logistic regression analysis with financial satisfaction and found to be not statistically significant in association with financial satisfaction. Therefore, H11 was supported, yet did not fully meet the
objective. A subjective measure of religiosity was found to be correlated with the objective measure of religiosity and yet, in a logistic regression, there were different outcomes with the objective measure statistically significant and the subjective measure not statistically significant. Research Question Three
The third research question sought to establish the relationship between religious text and religiosity with financial satisfaction. Three religious texts (Bible, Torah and Quran) were
evaluated. There were no statistically significant relationships between any of the texts and financial satisfaction. Considering the consistency in teaching between the texts, the lack of
difference was not surprising. However, the lack of influence of religiosity on financial satisfaction was unexpected. Hypotheses H12, H13 and H14 were not supported.
Research Question Four
The fourth research question sought to understand the influence of cultural tightness on financial satisfaction by evaluating the moderating effect of religiosity on the financial
satisfaction associated with geography and socioeconomic status. Two sets of logistic regression analyses which measured the association of the characteristics of geography (i.e., U.S. Region, population density, home ownership and single family home) and social class (i.e., lower, working, middle, upper) were tested with frequency of attendance at religious services as one potential moderator and subjective religiousity as the second potential moderator. None of the subjective religiosity models yielded statistically significant interaction terms. There were not statistically significant relationships found between subjective religiosity in a moderator role and the geography and social class variables. Frequncy of attendance was found to moderate East Region and West Region through the creation of a statistically significant interaction term. Hypotheses H15 was not supported and H16 was partly supported. Therefore, there was some
support for religion playing a moderating role in the association between characteristics of geography and financial satisfaction according to this study.
Discussion
This dissertation study challenged the concept of demographics as simple descriptors by considering the cultural influences that are associated with common terms, such as address and income. Culture is a complex influence that is individually assessed and internalized, which creates an analytical challenge when seeking to determine patterns within data sets. The
those reference groups results in culture(s) becoming powerful influences over the lives of members. From the financial planning perspective, identifying cultures that embody values and norms consistent with the needs of clients may enable clients who struggle to remain connected to their financial satisfaction become more successful.
The analyses of three individual cultures (i.e., geography, socioeconomic status and religion) which are common to the American experience, found points of association between characteristics of each of the cultures and financial satisfaction when analyzed individually. When analyzed collectively, differences between the subjective and objective measures representing the cultures resulted in different aspects of the cultures studied being statistically significantly associated with financial satisfaction. Income and frequency of attendance were positively associated with financial satisfaction when the objective measures were evaluated and home ownership along with the lower and upper social class, and the control variable of marital status (being married), were associated with financial satisfaction when subjective measures were evaluated. Religion as a moderator was not fully supported. The extrinsic expression of religion, frequency of attendance at religious services, was found to be a moderator of financial satisfaction in two U.S. regions.
Geographic characteristics and financial satisfaction
The finding of more predictors of financial satisfaction among indivdiuals who are living in the same state as at age 16 is unique. This finding, which has not previously reported in the literature, is consistent with the social identity theory that familiar values, norms, beliefs and reference groups work through identity to influence satisfaction (Berzonsky, 2010; Spears, 2010). In other words, the consistent experience of the culture of a place resulted in more points of association with financial satisfaction, according to the theory, resulted from the fact that
those characteristics conformed to the values, norms and beliefs of the individual and were supported by reference groups. However, iindividuals relocate for many reasons. Local climate diasters may force a relocation or accessing greater economic opportunities could be an
underlying cause of relocation. The data does not allow differentiation between root causes of relocation which may have a significant influence on the predictors. Nevertheless, clients who move, particularly across state lines, may lose their connections between characteriscs of the culture they left and the associated financial satisfaction. This could result in a greater likelihood of help seeking behaviors (Joo & Grable, 2001) as lower financial satisfaction is a characteric of those who seek the advice of a financial professional. For financial planners and educators, there are several possible implications of this finding. Recognizing that the cultures behind descriptors contain values, norms and beliefs and reference groups that influence the financial satisfaction of clients in ways that may be helpful or harmful is a first step.
As an example of the relationship between culture and finances, home ownership is typically associated with financial satisfaction at least in part due to the positive association between home ownership and net worth. According to the 2013 Survey of Consumer Finances, individuals who own their own home enjoyed a mean net worth increase of 2% from 2010 – 2013, increasing from $764,600 to $783,000. Over the same time frame, renters enjoyed a greater mean net worth increase (15%) with their mean net worth increasing from $61,300 to $70,300 However, the mean net worth of renters remained at less than 10% of that of home owners. (Bricker et al., 2014, p. 12). While owning a home is positively associated with net worth, owning a home is also positively associated with investing in a community (Hoff & Sen, 2004). The artifact of home ownership, net worth, may not be a compelling justification for making an investment in a home particulary if considered strictly in terms of return on
investment. The meaning of home ownership, however, is belonging and investing in a
community, which also entails the cultural experience of the community. Home ownership may result in internalizing the values, norms, beliefs, and feedback of reference groups (i.e.,
neighborhood homeowners) that then support financial satisfaction. Financial satisfaction, in turn, supports positive financial behaviors (Vera-Toscano, Ateca-Amestoy, & Serrano-Del- Rosal, 2006). This understanding of the cultural implication of home ownership could help planners and educators work with individuals to understand the value of home ownership, and how it could prioritize in their financial life. Recognizing this deeper implication of home ownership may also help planners identify which clients are more likely to either move forward with other financial goals that are valued in their culture, such as college savings, or be distracted by cultural values that may not support long term financial goals. Simply recognizing the
internalized influence of culture may help planners have more meaningful conversations with clients resulting in a clearer understanding of client financial priorities.
Secondly, planners should recognize the impact the unique values held in a geography may present when working with clients. Adapting to a new geography presents a different
cultural challenge to a relocated client, and goes beyond the decisions and costs associated with a move. The values, norms, beliefs, and reference group feedback of a client who has remained in the same location for a lifetime may be quite different than that of the relocated client. Cultural values, which could include factors such as home ownership, living in a single family home, or density of population (e.g., the importance of an urban home location), may be uniquely
associated with the financial satisfaction of clients in a geography. Asking questions to uncover